Some experts blame the high cost of real estate in California on greedy investors.  Supposedly, real estate investment in California real estate has driven the price of an average home out of reach of the average person.  It has also generated lots of paper for the courts in financial fraud cases such as this one:

Filed in Riverside County Superior Court Jan. 5, the suit alleges that the defendants acted as a network of scam artists to pocket cash from mortgage lenders and saddle her with about $3 million in mortgage debt. The lawsuit alleges that the brokerage, Stonewood Consulting Inc., obtained at least 12 home loans in Reiss' name by filling out loan applications with false information about her financial status after she signed incomplete forms. (The Californian)

Here’s another California case.  A single man who allegedly owns no property in his own  name is reportedly at the center of a real estate scheme which

… preys on single or divorced women. He has destroyed the credit of many people. He will destroy your credit. He tells you that he will make you wealthy. He will start a construction job in your home and never finish it. He does not own anything in his name. He will not put anything in his name. This is so that there is no paper trail back to him. He even has title and insurance people doing fraudulant activities for him for kickbacks. If anyone meets him, call the police, the FBI, and the IRS. Dont get involved with him. (sic) (real estate blog)

The more women purchase homes, the greater the pool of potential real estate fraud victims, but not all women are victims. Some are educating themselves and empowering others about financial fraud.  Take the Fraud Broads, for instance.

Nearly a decade ago, concerned that mortgage fraud was threatening their pastoral towns, the women -- two full-time mothers and a mortgage executive then in their 40s -- got together to write down license plate numbers of suspicious cars in their neighborhoods, scour public documents for housing titles and deeds and seek the help of local law enforcement. At first they were ignored, written off as bored housewives.

Today, the three women -- Ann Fulmer, Alicia Sheppard and Julia Barrette -- are helping train F.B.I. agents, speaking to lending associations across the country and lecturing college students on how to identify mortgage fraud. (New York Times)

Home ownership is empowering, but the process has the potential to empower thieves, con artists and real estate conspirators as well.  While single women, ethnic minorities and the elderly remain top targets for crooks, anyone who signs loan papers is a potential victim.  And, don’t count on the fact that  you are dealing with a large financial institution to save you.  Some of them are bigger crooks than the street corner dope dealer.

Don’t let your desperation or desire for home ownership  or a good investment put you in the hands of thieves and crooks.  Check out the people you are dealing with.  Check them out with local law enforcement agencies. Have an attorney review the documents.

Read what you sign.  If you don’t understand it, don’t sign it.  If the deal sounds too good to be true—it probably is. The money you save is your own.

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